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Luas drives property prices up

Friday, 29th December, 2017 10:00am

LUAS.jpg

LUAS.jpg

NORTHSIDE areas along the new Luas Cross City line are experiencing a surge in property values, with some asking prices up by as much as 25 per cent.

An analysis of the Property Price Register and asking prices on MyHome.ie shows that in Cabra, which has two Luas stops, the average asking price is now €337,000, over nine per cent ahead of the average sold price of €307,000.

Neighbouring Phibsboro has the highest average sold price of €359,000, with the average asking price currently set at €349,000. But in Stoneybatter the average sold price of €300,000 is up 25 per cent to €374,000.

Meanwhile, research from Daft.ie found that three-bed homes near the new Luas Cross City stops saw their values increase by 15 per cent over the last year, compared to a six per cent increase in similar homes near other rail stations.

The Luas Blue line, which opened on December 9, allows people to travel from Cabra to St Stephen’s Green via Phibsboro, Stoneybatter, the North City Centre, Parnell Square, O’Connell Street, Dame Street and Dawson Street.

Managing Director of MyHome.ie, Angela Keegan, says data indicates that the Luas, combined with the shortage of affordable properties close to the city centre, is causing a spike in prices.

“It’s quite difficult to predict the effect the Luas will have on property prices in a given area,” she said.

“Based on several reports which examined property prices near the Green and Red lines, a 10 per cent increase would not seem unreasonable and that seems to be happening in Cabra.

“The increases in Stoneybatter are well in excess of that but other factors are probably at play there such as its popularity, café culture and proximity to the city centre.

“While asking prices in Phibsboro may be pausing for now – and it’s important to remember this is a snapshot in time - we don’t see them retreating from their current level.

“Clearly the shortage of properties in the €250,000 to €350,000 price range in Dublin generally is another key factor.”

According to MyHome.ie’s figures, there have been 432 sales in Dublin 7 in the first nine months of the year: 81 of these sales were in Cabra, 76 in Phibsboro and 45 in Smithfield.

“There are just 84 properties for sale in Phibsboro, Stoneybatter and Cabra at the beginning of the month and not surprisingly properties are changing hands quickly,” added Keegan.

“In Cabra, time to sale agreed is less than two months, while elsewhere it’s between two and a half and three months.”

Speaking on the Daft.ie research, Ronan Lyons, economist at Trinity College, said it was well known that transport infrastructure can have a big impact on property values.

“The opening of the Luas Cross City line has clearly added value in the areas newly served by light rail,” he stated.

Mr Lyons added: “Three-bed homes near the new Luas stations saw their values increase by 15 per cent over the last year, compared to a six per cent increase in similar homes near other rail stations.”